The financing of companies in the industrial sector in Benguela, Province of Angola

Abstract

The purpose of this paper is to know and to analyze the sources of financing and financial products used by industrial companies in the Benguela Province, in Angola. It aims also to understand the acceptability and suitability of alternative forms of financing, and to understand the difficulties faced by companies when accessing credit. The method used is quantitative and exploratory, in which a survey was sent to industrial companies in the Benguela Province, questioning about the different ways of financing. The results suggest that self-financing is the main source of funding for industrial companies, followed by bank credit. Loans and state grants are residual. The results show two important factors when companies want to finance its operations: the daily life of the company and the company's financial structure. Despite the fact that this is an exploratory study, the two factors that were found make a contribution to the study of the industrial companies’ financing in the Benguela Province, deserving attention by investors, managers and equity holders.